Answer of the question in the picture 2025> DSC1630-25-S1 Welcome Message Assessment 3QUIZAssessment 3Lucky borrowed R275 000 from Ed at an interest rate of 16% per year, compounded quarterly, payable in five years' time. This debt will bedischarged by the sinking fund method. (This means that the debt interest payments are made every three months.) The sinking fund will earninterest at a rate of 14% per year, compounded half yearly. The half yearly deposits in the sinking fund approximately equalsbus pageR13 750R20 235R9 235R19 904E6M3660ANext pageNevt antiviruRain...

Okay, let's tackle this problem step by step. So, Lucky borrowed R275,000 from Ed at 16% per year…

Answered: 2025> DSC1630-25-S1 Welcome Message…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 15P

See similar textbooks

Similar questions

On a loan of $1400, interest at 9% effective must be paid at the end of each year. The borrower also deposits $X at the beginning of each year into a sinking fund earning 4.7% effective. At the end of 10 years the sinking fund is exactly sufficient to pay off the loan. Calculate X. A. $ 1617.11 B. $ 1078.07 C. $ 1347.59 D. $ 1724.92 E. $ 1232.09
Subject :
5.39 A borrower takes out a loan of $5,000 for 2.25 years. Construct a sinking fund schedule if the lender receives 9% effective on the loan per year, with interest payments payable at the end of each quarter, and if the borrower accumulates a sinking fund with semi-annual deposits earning 8% compounded quarterly.
I need the answer of the question attached! Thanks
14 polmts) A 15-year, $500,000 loan will be repaid by the sinking fund method. Interest only must be paid at the end of each year. At the same time, 15 equal annual deposits will be made to a sinking fund that is to accumulate the $500,000 needed to repay the principal after 15 years. Interest on the loan is 14% compounded annually, and the sinking fund will earn 10% compounded annually. What will be the increase in the sinking fund during the 10th year? $37,106.76 $25,080.55 $21,369.87 $37,086.79
If K40, 000 is deposited at the end of each half year in an account that earns 6.2% compounded semiannually, how long will it be before the account contains k1, 200, 000? b. When you establish a sinking fund, which interest rate is better? Explain.i. (a) 10% (b) 6% ii. (a) 12% compounded monthly (b) 12% compounded annuallyc. If k2500 is deposited at the end of each quarter in an account that earns 5% compounded quarterly, after how many quarters will the account contain k80, 000?d. A lottery prize worth k 2,400,000 is awarded in payments of k 20,000 at the beginning of each month for 20 years. Suppose money is worth 7.8%, compounded monthly. What is the real value of the prize?e. A couple who borrow K90, 000 for 30 years at 7.2%, compounded monthly, must make monthly payments of K610.91. (a) Find their unpaid balance after 1 year.(b) During that first year, how much interest do they pay?f. The first term of a GP represents the number of tins of beans sold in Food Lovers the week before…
Find the amortization table for a $8,000 loan amortized in five annual payments if the interest rate is 4.3% per year compounded annually. (Round your answers to the nearest cent.) End ofPeriod RepaymentMade InterestCharged PaymentTowardPrincipal Outstanding principle 0 8,000 1 2 3 4 5
i will 10 upvotes urgent 10152 is incorrect. 10603 is incorrect. 10602 is incorrect. 13683 is incorrect. 198448 is incorrect. Please show correct solution, thank you.
A 20-year loan of 20, 000 may be repaid under the following two methods: i. amortization method with equal annual payments at an annual effective rate of 6% ii sinking fund method in which the lender receives an annual effective rate of 7% and the sinking fund earns an annual effective rate of j Both methods require a payment of X to be made at the end of each year for 20 years. Calculate s0 j
Develop an amortization schedule for the loan described. (Round your answers to the nearest cent.) $200,000 for 3 years at 9% compounded annually Period Payment Interest Balance Reduction Unpaid Balance $200,000 $ 200,000 $1500 $ 195,140.05X 2 $ 200,000 $ 1500 3. $ 200,000 $0.00
MND
#7 A borrower takes out a loan of $2000 for two years. Construct a sinking fund schedule if the lender receives 10% effective on the loan and if the borrower replaces the amount of the loan with semiannual deposits in a sinking fund earning a nominal rate of discount at 8% convertible semiannually.

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS